The UK economy has been through a difficult few years with the repercussions of Brexit, the covid-19 pandemic and now the cost of living crisis. The property market has so far survived these difficult situations but the mini budget in September rocked the financial and mortgage markets. This caused the confidence in the usually strong property market to be affected. Here, we briefly explore whether the property market in the UK can weather this storm and return to its previous highs.
Property market figures
After the immediate shock of September’s mini-budget, figures released by the HMRC for the residential transactions that took place in October reveal that the UK property market appears to be currently unaffected by the recent economic uncertainty. The figures show that in October 2022, the UK property market processed 110,850 transactions which is an increase of 29% when compared to October 2021. Even when taking into account the increase in sales due to the benefits of the stamp duty holiday and post covid property surge, it shows that the UK property market is still growing and people are still wanting to buy and sell their homes.
Mortgages and interest rates
Experts in the field of mortgages and lending have expressed positivity at the results revealed by HMRC. After the immediate crisis following the September mini-budget, wherein mortgage rates increased, offers were pulled from the market and customers were left feeling concerned, things have settled down in the last couple of months. There is still a high demand for mortgages and industry experts have noted that lenders are bringing back deals to the market.
The interest rates on three-year fixed mortgage deals have fallen in the last few weeks which is sure to encourage potential borrowers. If you combine these improvements in interest rates with the cuts to stamp duty confirmed in Jeremy Hunt’s autumn budget, it demonstrates that the UK property market is still resilient in the face of changes and uncertainty. It is still very much recommended that you seek expert advice to secure the best mortgage deal for your circumstances at the present time and into the future. If you are in need of conveyancing solicitors to help with your property sale or purchase, firms such as https://www.samconveyancing.co.uk/ can help you negotiate your way through conveyancing during these challenging economic times.
Investments in the property market
If you are looking to invest in the property market, the uncertain economic situation can be concerning. However, industry experts suggest that the number of transactions, as reported by HMRC, demonstrates that the UK property market is still in a healthy condition. Buyers should always undertake thorough research into any property and take expert advice where appropriate.
Can the UK property market weather this storm?
Because of the ongoing global and national financial challenges, it is predicted that there will be a gradual slowdown in the property market. This is primarily due to the effects of the cost of living crisis, the rise in interest rates and the instability that has been evident in the UK government over the last few months. However, with the stability of the new prime minister and chancellor and positive figures from HMRC, experts are confident that the UK can survive these difficult times.
